The Simplest and Most Effective Way to Develop Your Company’s Business Model

A highly useful exercise I recommend before launching an internationalization strategy is to define Business Model of your company.

The Business Model describes your company’s entrepreneurial formula—how it creates value for customers, delivers it, and captures it.

The issue is that, in my experience, not only do few SMEs have a clear understanding of their business model, but most lack a methodology to build and communicate it.

Luckily, such a methodology exists and is accessible to everyone: it's called the Business Model Canvas.

With this method, you can visually represent the components of your business model on a single surface (hence the word canvas, like a painter’s canvas), divided into nine building blocks.

The four blocks on the right side of the canvas (Customers – Value Proposition – Channels – Customer Relationships) represent the front office of your company, i.e., how it interacts with the market and generates revenue.

The three blocks on the left (Key Resources – Key Activities – Key Partners) describe the back office meaning the internal resources and activities that generate the costs required to create and deliver value.

To complete the nine blocks, you’ll need to answer key questions such as:

- Who are the customers and how can they be segmented?

- What problem or need are we solving?

- How do we create and deliver value to the customer?

- What resources do we need?

- What process must we implement?

The power of this model lies not only in clarifying each component of your business model but also in showing how all the elements interact—and how changing one block impacts the others.

For example, if your company wants to add e-commerce to your existing channels, this change will affect not only the "Channels" block, but also: the customer segments you can reach, the value proposition, The activities you'll need to carry out, the resources and partners you’ll require

Set aside at least half a day to define your company’s business model, ideally with the heads of various departments and guided by a Business Model expert.

Once you've mapped out your current model, the next exercise is to project it into the future and understand how it needs to evolve for the foreign markets you’ll be targeting with your strategy.

We’ll cover that in a future newsletter.

Click here http://bit.ly/4envRnO e scarica il canvas GOABROAD Blueprint, che in una sola pagina ti guiderà ad applicare il metodoThe GOABROAD^© method to take control of your internationalization strategy!

Buy the book GOABROAD Blueprint: Strategy, tactics and tools for SME internationalisation (English Edition) on Amazon: http://bit.ly/3TqmeN9